USD/JPY is currently trading with a bearish bias. The pair traded short as previously forecasted but could not close along the support 122.36 to mark the end of wave (4). thus, we still expect further downward movements towards this level before we begin wave (5). We still anticipate similar movements in HKD/JPY and CAD/JPY, these pairs have had a strong positive correlation of upto +0.96, and are thus expected to move in a similar direction. Thus, only buy or sell USD/JPY if all the other positively correlated pairs are giving the same signal.
Remain short in this pair but only up to 122.36, or the support trend. We will therefore buy from 122.36, but with stops at 122.022